Concept of Inventory control

 Nature and Scope of Inventory Control:

We know that there are many functions of material management. These functions are procurement, purchasing, inventory control, transportation and so on. Every function plays an important role in effective production. Among all inventory control is one of an important function because it keeps righjt number of raw material, parts, production, equipments, tools in stick to abide shortage, scarcity and so on.

The process in which manager forecast the need, requirement of organisation and arrange all these thongs earlier to use whenever it is needed. This process os called inventory control.

In other words we can say that the scientific and systematic process of requiring, movable items to minimise, problems and maximise production. This process is calle inventory control.

Objectives of inventory control:

1. To fulfil the need, requirement of organisation in coming week, months and years.

2. To balance raw material in select and boom period.

3. To fulfil the need, want, requirement of customer at right time and right way.

4. To make production process more smooth and fast.

5. For optimum utilisatiion of resource of organisation.

6. To balance planned production and actual production.

7. To balance all requirement of production from organisation to source.

Advantage of  inventory control:

1. It ensures regular and adequate supply of raw material; to organisation.

2. It makes  economical purchasing.

3. It maintain the level of stock at every time.

4. It maintains the budget production and actual production at continuous basis at context of daily, weekly and yearly basis.

5.  It support production process by systematic, scientific and technically basis.

6. It ffulfil all need, want, requirement of production. So, cent percent feature possessing products produce.

7. It reduce the loss of organisation due to change in pricing activity.